Issue
What financial detail entries will be made when you retire an asset with a half-year averaging convention?
Resolution
Depreciation for half a year will be taken in the year that you retire. Also, any proceeds will be recognized in the last month that depreciation was taken. For example, if you retire an asset in February (calendar year) the gain/loss will be recognized in June.
To get this information correctly into your GL follow the procedures below:
1. Run a GL-Interface for all periods that will be affected by this retirement.
2. Do the retirement of the assets.
3. Run the GL-Interface for all periods that were affected by the retirement and put a transaction date on it when you want it to hit the General Ledger.
This will put the proceeds and the depreciation on the date that you want it in the General Ledger.
Note - There is an exception to this. If an asset that uses the half-year averaging convention is retired in the same year it is placed in service, the system will not take any depreciation for the year. This only applies to the half-year averaging convention.
This article was TechKnowledge Document ID:6078
What financial detail entries will be made when you retire an asset with a half-year averaging convention?
Resolution
Depreciation for half a year will be taken in the year that you retire. Also, any proceeds will be recognized in the last month that depreciation was taken. For example, if you retire an asset in February (calendar year) the gain/loss will be recognized in June.
To get this information correctly into your GL follow the procedures below:
1. Run a GL-Interface for all periods that will be affected by this retirement.
2. Do the retirement of the assets.
3. Run the GL-Interface for all periods that were affected by the retirement and put a transaction date on it when you want it to hit the General Ledger.
This will put the proceeds and the depreciation on the date that you want it in the General Ledger.
Note - There is an exception to this. If an asset that uses the half-year averaging convention is retired in the same year it is placed in service, the system will not take any depreciation for the year. This only applies to the half-year averaging convention.
This article was TechKnowledge Document ID:6078